2019 UEM Edgenta Annual Report

Group Statement of Value Added In RM Million 2018 2019 VALUE ADDED Continuing operations Revenue 2,183 2,411 Other income 40 60 Interest income 10 6 Operating expenses (1,206) (1,300) Finance cost (28) (28) Share of profit of associates and joint ventures 17 22 VALUE ADDED AVAILABLE FOR DISTRIBUTION 1,016 1,171 DISTRIBUTION To Employees Employee cost 751 857 To Government Taxation 43 54 To Shareholders Dividend 241 116 Non-controlling interests 4 6 Retained for reinvestment and future growth Depreciation and amortisation 67 72 Retained earnings (90) 66 TOTAL DISTRIBUTED 1,016 1,171 Distribution of Value Added Employee Cost Taxation Dividend & Non-controlling Interest Depreciation, Amortisation & Retained Earnings 74% 4% 24% -2% 2018 73% 5% 10% 12% 2019 46 Group Strategy OUR VISION An Asset Management and Infrastructure Solutions company with a vision of “Optimising Assets to Improve Lives” Our long-term strategy is geared towards building Edgenta of the Future, representing a technology company which focuses on healthcare and infrastructure. To achieve this goal, we have identified four strategies which are tied to our delivery model, the competencies and capabilities we need, and the income streams which we generate. 01 Delivery Model Disrupting Our Delivery Model • Tech-driven Delivery model 02 Competencies Deepen Our Competencies • Contractor management • HSSE leadership • Research and development; and productisation 03 Capabilities Develop Total Solutions Capabilities • Design to delivery capabilities • Funding solutions / capital advisory • Work with network of technical and financial partners 04 Income Streams Broaden Income Streams • Adjacent sectors • New geographies • Broader client base We have also identified the three values which define who we are as an organisation in carrying out our business: Our strategies are supported by six strategic focus areas, which make up the tactical initiatives we undertake and use to measure our progress towards achieving our vision. Operational Excellence Organisational Excellence Client Solutions Technology & Innovation Health, Safety, Security and Environment Stakeholder Management & Communications • Assurance and Peace of Mind as our value proposition to clients • Edgenta Way as the industry standard Purpose Driven • Platforms, systems & processes • Technology and innovation as a company culture Powered by Technology • Sustainability as a hallmark of industry leadership & corporate citizenry • Leadership by example – Triple Bottom-Line goals (People, Planet and Profit) Sustainability 47 UEM Edgenta Berhad UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Annual Report 2019